A proposal by the NYSE Arca to tighten listing requirements for commodity-based trusts is now under review by the U.S. Securities and Exchange Commission, a move that could reshape the path to market for future crypto exchange-traded funds. The SEC is seeking public comment on the proposed rule change, which would require at least 85% of a trust's assets to be held in qualifying investments.
"The exchange proposes to amend Rule 8.201-E (Generic) to modify the generic listing standards for commodity-based trust shares," the SEC notice published on April 27, 2026, stated. The change is presented as a way to permit more listings while ensuring most of a fund's exposure is tied to assets with established market surveillance.
Under the proposal, a trust’s portfolio would be tested daily to ensure 85% of its net asset value consists of eligible commodities, securities, cash, or cash equivalents. The remaining 15% could be held in other assets not independently meeting the rule's criteria. Crucially, the framework would measure derivatives by their gross notional value, meaning large futures or options positions could significantly influence whether a product qualifies for listing.
The rule change could introduce higher barriers for more complex crypto ETFs. For example, a trust holding 95% of its value in assets like bitcoin, ether, and XRP—which have regulated futures markets—would meet the standard. However, a fund using over-the-counter derivatives could fail the test even with a majority holding in an eligible asset like bitcoin. The proposal also explicitly excludes non-fungible assets and collectibles from the generic commodity definition, pushing them into a separate, non-generic approval process. If approved, the rule could delay or complicate the listing of new spot crypto ETFs, particularly for assets like XRP or funds that plan to utilize derivative strategies.
This article is for informational purposes only and does not constitute investment advice.
